IBG, Inc.(IBKR) - 2025 Q3 - Quarterly Results

Executive Summary 3Q2025 Headline Results Interactive Brokers Group announced strong results for the quarter ended September 30, 2025, with significant year-over-year increases in both GAAP and adjusted diluted EPS, net revenues, and income before income taxes | Metric | 3Q2025 (GAAP) | 3Q2025 (Adjusted) | 3Q2024 (GAAP) | 3Q2024 (Adjusted) | | :-------------------------- | :-------------- | :---------------- | :-------------- | :---------------- | | Diluted EPS | $0.59 | $0.57 | $0.42 | $0.40 | | Net Revenues (Millions) | $1,655 | $1,610 | $1,365 | $1,327 | | Income Before Taxes (Millions) | $1,312 | $1,267 | $909 | $871 | Financial Highlights The company reported robust growth in commission revenue and net interest income, alongside significant reductions in general and administrative expenses, leading to a higher pretax profit margin - The Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on December 12, 2025[4] Key Financial Performance Indicators (YoY Change) | Metric | 3Q2025 Value | YoY Change | | :-------------------------------- | :------------- | :--------- | | Commission revenue | $537 million | +23% | | Net interest income | $967 million | +21% | | Other fees and services | $66 million | -8% | | Execution, clearing and distribution fees | $92 million | -21% | | General and administrative expenses | $62 million | -59% | | Pretax profit margin (reported/adjusted) | 79% | +12 pp / +13 pp | | Total equity | $19.5 billion | N/A | - Commission revenue growth was driven by higher customer trading volumes in stocks (+67%) and options (+27%), despite a 7% decrease in futures volume[6] - Net interest income increased due to stronger securities lending activity and higher average customer margin loans and customer credit balances[6] - General and administrative expenses decreased primarily due to the non-recurrence of $88 million related to legal and regulatory matters and $12 million from European subsidiary consolidation, partially offset by a $10 million increase in advertising expenses[6] Business Highlights Other income saw a significant increase, though the company's currency diversification strategy had a negative impact on comprehensive earnings during the quarter - Other income increased 52% to $85 million, mainly driven by $42 million from investing activities[7] - The currency diversification strategy decreased comprehensive earnings by $33 million, as the U.S. dollar value of the GLOBAL (a basket of 10 major currencies) decreased by approximately 0.25%[8] Operational Performance Customer Statistics Interactive Brokers demonstrated strong customer growth in 3Q2025, with significant year-over-year increases across key metrics such as total accounts, customer equity, and daily average revenue trades (DARTs) Customer Statistics (YoY Change) | Metric | 3Q2025 | 3Q2024 | % Change | | :-------------------------------- | :------- | :------- | :--------- | | Total Accounts (in thousands) | 4,127 | 3,120 | +32% | | Customer Equity (in billions) | $757.5 | $541.5 | +40% | | Total Customer DARTs (in thousands) | 3,616 | 2,703 | +34% | | Customer credits (in billions) | $154.8 | N/A | +33% | | Customer margin loans (in billions) | $77.3 | N/A | +39% | | Commission per Cleared Commissionable Order | $2.70 | $2.83 | -5% | Customer Statistics (QoQ Change) | Metric | 3Q2025 | 2Q2025 | % Change | | :-------------------------------- | :------- | :------- | :--------- | | Total Accounts (in thousands) | 4,127 | 3,866 | +7% | | Customer Equity (in billions) | $757.5 | $664.6 | +14% | | Total Customer DARTs (in thousands) | 3,616 | 3,552 | +2% | | Commission per Cleared Commissionable Order | $2.70 | $2.65 | +2% | | Cleared Avg. DARTs per Account (Annualized) | 195 | 206 | -5% | Executed Order Volumes Executed order volumes showed strong year-over-year growth in 3Q2025 for both customer and principal orders, with a moderate sequential increase from the previous quarter Executed Order Volumes (in thousands) | Period | Customer Orders | % Change (YoY) | Principal Orders | % Change (YoY) | Total Orders | % Change (YoY) | | :------- | :-------------- | :------------- | :--------------- | :------------- | :----------- | :------------- | | 3Q2024 | 171,620 | N/A | 17,722 | N/A | 189,342 | N/A | | 3Q2025 | 229,635 | +34% | 30,659 | +73% | 260,294 | +37% | | 2Q2025 | 220,215 | N/A | 28,372 | N/A | 248,587 | N/A | | 3Q2025 (QoQ) | 229,635 | +4% | 30,659 | +8% | 260,294 | +5% | Contract and Share Volumes Customer trading volumes in options and stocks experienced substantial year-over-year growth, while futures volumes saw a decrease. Principal transactions showed declines across all categories Total Contract and Share Volumes (3Q2025 vs 3Q2024) | Product | 3Q2025 Volume (000's) | % Change (YoY) | | :-------- | :-------------------- | :------------- | | Options (contracts) | 428,524 | +24% | | Futures (contracts) | 52,233 | -8% | | Stocks (shares) | 119,250,686 | +65% | Customer Contract and Share Volumes (3Q2025 vs 3Q2024) | Product | 3Q2025 Volume (000's) | % Change (YoY) | | :-------- | :-------------------- | :------------- | | Options (contracts) | 418,389 | +27% | | Futures (contracts) | 51,936 | -7% | | Stocks (shares) | 118,307,826 | +67% | Principal Transaction Volumes (3Q2025 vs 3Q2024) | Product | 3Q2025 Volume (000's) | % Change (YoY) | | :-------- | :-------------------- | :------------- | | Options (contracts) | 10,135 | -29% | | Futures (contracts) | 297 | -60% | | Stocks (shares) | 942,860 | -31% | Financial Statements Consolidated Statements of Income The consolidated statements of income show significant year-over-year growth in revenues and net income for both the three and nine months ended September 30, 2025, driven by increased commissions and net interest income, coupled with reduced non-interest expenses Consolidated Statements of Income (Three Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | YoY Change | | :-------------------------------- | :-------------- | :-------------- | :--------- | | Commissions | $537 | $435 | +23.4% | | Total net revenues | $1,655 | $1,365 | +21.2% | | Total non-interest expenses | $343 | $456 | -24.8% | | Income before income taxes | $1,312 | $909 | +44.3% | | Net income | $1,186 | $834 | +42.2% | | Net income available for common stockholders | $263 | $184 | +42.9% | | Diluted EPS | $0.59 | $0.42 | +40.5% | Consolidated Statements of Income (Nine Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | YoY Change | | :-------------------------------- | :-------------- | :-------------- | :--------- | | Commissions | $1,567 | $1,220 | +28.4% | | Total net revenues | $4,562 | $3,798 | +20.1% | | Total non-interest expenses | $1,091 | $1,143 | -4.6% | | Income before income taxes | $3,471 | $2,655 | +30.7% | | Net income | $3,156 | $2,438 | +29.4% | | Net income available for common stockholders | $700 | $538 | +30.1% | | Diluted EPS | $1.58 | $1.24 | +27.4% | Consolidated Statements of Comprehensive Income The consolidated statements of comprehensive income show a substantial increase in comprehensive income available for common stockholders for both the three and nine-month periods, despite a negative impact from cumulative translation adjustment in the current quarter Consolidated Statements of Comprehensive Income (Three Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | YoY Change | | :-------------------------------- | :-------------- | :-------------- | :--------- | | Net income available for common stockholders | $263 | $184 | +42.9% | | Other comprehensive income (loss), net of tax | $(10) | $39 | -125.6% | | Comprehensive income available for common stockholders | $253 | $223 | +13.5% | | Diluted Comprehensive EPS | $0.57 | $0.51 | +11.8% | Consolidated Statements of Comprehensive Income (Nine Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | YoY Change | | :-------------------------------- | :-------------- | :-------------- | :--------- | | Net income available for common stockholders | $700 | $538 | +30.1% | | Other comprehensive income (loss), net of tax | $97 | $11 | +781.8% | | Comprehensive income available for common stockholders | $797 | $549 | +45.2% | | Diluted Comprehensive EPS | $1.80 | $1.26 | +42.9% | Condensed Consolidated Statements of Financial Condition The condensed consolidated statements of financial condition show substantial growth in total assets, liabilities, and equity as of September 30, 2025, compared to December 31, 2024, reflecting increased customer activity and segregated funds Condensed Consolidated Statements of Financial Condition (in millions) | Metric | Sep 30, 2025 | Dec 31, 2024 | Change | | :-------------------------------- | :----------- | :----------- | :----- | | Total assets | $200,222 | $150,142 | +33.4% | | Total liabilities | $180,742 | $133,545 | +35.3% | | Total equity | $19,480 | $16,597 | +17.4% | | Stockholders' equity | $5,106 | $4,280 | +19.3% | | Noncontrolling interests | $14,374 | $12,317 | +16.7% | | Cash - segregated for regulatory purposes | $48,784 | $36,600 | +33.3% | | Securities - segregated for regulatory purposes | $38,691 | $27,846 | +38.9% | | Receivables from customers, net | $77,588 | $64,432 | +20.4% | | Securities loaned | $27,031 | $16,248 | +66.4% | | Other payables: Customers | $149,442 | $115,343 | +29.6% | Net Interest Margin Analysis Net Interest Margin Performance Net interest income increased significantly year-over-year for both the three and nine-month periods, driven by growth in average interest-earning assets and interest-bearing liabilities, although the net interest margin (NIM) slightly decreased Net Interest Margin (Three Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | YoY Change | | :-------------------------------- | :-------------- | :-------------- | :--------- | | Average interest-earning assets | $183,747 | $138,709 | +32.5% | | Average interest-bearing liabilities | $162,815 | $121,124 | +34.4% | | Net interest income | $999 | $826 | +20.9% | | Net interest margin ("NIM") | 2.16% | 2.37% | -0.21 pp | | Annualized yield: Segregated cash and securities | 3.81% | 4.91% | -1.10 pp | | Annualized yield: Customer margin loans | 4.60% | 5.73% | -1.13 pp | | Annualized yield: Customer credit balances | 2.64% | 3.48% | -0.84 pp | Net Interest Margin (Nine Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | YoY Change | | :-------------------------------- | :-------------- | :-------------- | :--------- | | Average interest-earning assets | $168,422 | $133,096 | +26.5% | | Average interest-bearing liabilities | $148,429 | $116,256 | +27.7% | | Net interest income | $2,654 | $2,393 | +10.9% | | Net interest margin ("NIM") | 2.11% | 2.40% | -0.29 pp | | Annualized yield: Segregated cash and securities | 3.88% | 4.96% | -1.08 pp | | Annualized yield: Customer margin loans | 4.71% | 5.79% | -1.08 pp | | Annualized yield: Customer credit balances | 2.69% | 3.51% | -0.82 pp | - FDIC sweeps represent the average amount of customer cash swept into FDIC-insured banks, with income from these deposits reported in other net interest income[25] Non-GAAP Financial Measures Reconciliation Adjusted Financial Metrics Interactive Brokers provides non-GAAP adjusted financial measures to offer a clearer view of core operating results by excluding the effects of currency diversification strategy and mark-to-market on investments, which management believes are not indicative of underlying business performance - Management uses non-GAAP measures to evaluate core operating performance and facilitate meaningful comparisons, excluding items like currency diversification strategy and mark-to-market on investments[33] Adjusted Net Revenues (in millions) | Metric | 3Q2025 | 3Q2024 | | :-------------------------- | :----- | :----- | | Net revenues - GAAP | $1,655 | $1,365 | | Total non-GAAP adjustments | $(45) | $(38) | | Adjusted net revenues | $1,610 | $1,327 | Adjusted Income Before Income Taxes (in millions) | Metric | 3Q2025 | 3Q2024 | | :-------------------------------- | :----- | :----- | | Income before income taxes - GAAP | $1,312 | $909 | | Total non-GAAP adjustments | $(45) | $(38) | | Adjusted income before income taxes | $1,267 | $871 | Adjusted Diluted EPS | Metric | 3Q2025 | 3Q2024 | | :-------------------------- | :----- | :----- | | Diluted EPS - GAAP | $0.59 | $0.42 | | Total non-GAAP adjustments | $(0.02) | $(0.02) | | Adjusted diluted EPS | $0.57 | $0.40 | - The adjusted pre-tax profit margin for 3Q2025 was 79%, compared to 66% in the year-ago quarter[29] Company Information & Disclosures About Interactive Brokers Group, Inc. Interactive Brokers Group, Inc. is an S&P 500 member and a global electronic broker providing automated trade execution and custody services across over 160 markets worldwide, serving diverse client segments with a sophisticated, low-cost platform - Interactive Brokers Group, Inc. (NASDAQ: IBKR) is a member of the S&P 500[10] - Its affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and forecast contracts around the clock on over 160 markets in numerous countries and currencies from a single unified platform[10] - The company serves individual investors, hedge funds, proprietary trading groups, financial advisors, and introducing brokers, leveraging four decades of focus on technology and automation[10] Conference Call Information Details for the 3Q2025 earnings conference call, including registration and webcast access - A conference call was held on October 16, 2025, at 4:30 p.m. ET to discuss quarterly results[9] - Public listeners could register at https://register-conf.media-server.com/register/BIac68f27184924c038fe4a9b3e32b300f for dial-in details[9] - The conference call was also accessible via audio webcast through the Investor Relations section of www.interactivebrokers.com/ir[9] Cautionary Note Regarding Forward-Looking Statements The report includes a standard cautionary note regarding forward-looking statements, highlighting the inherent risks and uncertainties that could cause actual results to differ from projections - Forward-looking statements are subject to many risks, uncertainties, and factors that may cause actual results to be materially different from any expressed or implied future results[12] - The Company does not undertake to publicly update or revise its forward-looking statements[12] - Additional information on risk factors can be found in the Company's filings with the Securities and Exchange Commission[12] Investor Relations Contact Contact information for investor and media inquiries is provided - Investors can contact Nancy Stuebe at investor-relations@ibkr.com[13] - Media inquiries can be directed to Rob Garfield at media@ibkr.com[13]